Reminder about new financial resource requirements for responsible entities

From 1 November 2012, REs will need to comply with new financial resource requirements. 

To meet the new net tangible asset ("NTA") capital requirements, REs must hold the greater of:

A liquidity requirement has also been introduced where an RE must hold at least 50% of its NTA requirement in cash or cash equivalents, and an amount equal to the NTA requirement in liquid assets.

In addition, the RE will need to prepare and maintain cash flow projections which cover a period of at least 12 months.  The cash flow projections will need to be approved by the Board on at least a quarterly basis.  The cash flow projections will need to be updated when:

To download a full copy of Class Order 11/1140 visit www.asic.gov.au or click here.

How can we assist you?

Licensee Solutions is able to help you to obtain an RE licence and assist with the monitoring of your obligations as an RE.  To the extent to which any issues require the provision of legal services, we can refer you to our associated law firm, Halsey Legal Services.  Licensee Solutions and Halseys can assist you by providing:

For more information on how we can assist you, please telephone Fiona Halsey for a confidential discussion on (08) 9381 2914.